Progress Software Q2 Profit Tops Estimate; Boosts FY15 Earnings Outlook

(RTTNews) - Progress Software Corp. (PRGS) reported net income for the second quarter of $5.8 million or $0.11 per share, compared to $12.8 million or $0.25 per share for the year-ago quarter.

Excluding items, adjusted net income for the second quarter was $18.1 million or $0.35 per share, compared to $19.2 million or $0.37 per share in the prior year quarter.

Revenue for the second quarter rose 10% to $88.8 million from $80.8 million a year earlier, while adjusted revenue increased to $100.9 million from $80.8 million last year.

Analysts polled by Thomson Reuters expected the company to earn $0.31 per share on revenue of $99.15 million for the second quarter. Analysts' estimates typically exclude special items.

Looking forward to the third quarter, the company forecasts adjusted revenue of $101 million to $104 million and adjusted earnings of $0.35 to $0.38 per share. Analysts currently expect the company to earn $0.35 per share on revenue of $103.15 million for the third quarter.

For the fiscal year 2015, the company continues to forecast adjusted revenue of $415 million to $425 million, but raised its adjusted earnings outlook to a range of $1.45 to $1.52 per share from its prior outlook of $1.35 to $1.45 per share.

Analysts currently expect the company to earn $1.42 per share on revenue of $419.15 million for the fiscal year 2015.

Separately, Progress Software said that it has appointed Jerry Rulli, president of the company's OpenEdge Business Unit, as Chief Operating Officer.

Rulli joined Progress in August 2014 as president, OpenEdge Business Unit, and in that capacity, has led the company's flagship business through three quarters of solid growth.